BoC leaves rates unchanged
(4 March 2010 – Global) Canada’s central bank has left its key interest rate unchanged at the record-low of 0.25 percent, also indicating that it would not make any moves to the benchmark rate until at least July.
The Bank of Canada kept its interest rates at the record-low to achieve an annual inflation target of two percent. The most recent data for January showed inflation at 1.9 percent.
Core inflation, which excludes volatile items such as energy, was two percent. However, the Bank of Canada had projected that core inflation would not reach two percent until the third quarter of next year.
The rate statement emerged a day after economic data indicated the Canadian economy grew at a robust five percent annualised pace in the final three months of 2009, blowing past market expectations for a four percent gain and the central bank's 3.3 percent forecast.
The central bank acknowledged in a statement that economic activity has been ‘slightly higher’ than its own projections, with the five percent gain in the fourth quarter powered by ‘vigorous domestic demand’ and a recovery in exports.
Core inflation, which excludes volatile items such as energy, was two percent. However, the Bank of Canada had projected that core inflation would not reach two percent until the third quarter of next year.
The rate statement emerged a day after economic data indicated the Canadian economy grew at a robust five percent annualised pace in the final three months of 2009, blowing past market expectations for a four percent gain and the central bank's 3.3 percent forecast.
The central bank acknowledged in a statement that economic activity has been ‘slightly higher’ than its own projections, with the five percent gain in the fourth quarter powered by ‘vigorous domestic demand’ and a recovery in exports.
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